UK-based economists Markit have commented that the demand for IT contractors has risen to its highest level since the economic downturn took hold in April of last year. Speaking to Contractor UK, Markit stated that their index shows that the demand for IT contractors in October was at 53.8, the highest level in 17 months. The demand for permanent IT staff had also increased, peaking at 51.5.
Markit’s index uses 50 as an indication that there has been no change, therefore a figure above 50 denotes an increase and below 50 shows deterioration. One of their economists, Jack Kennedy confirmed that this increase in demand for IT workers is the result of the sector benefiting from “broad based stabilisation”. He also attributed the improvement to reported shortages of software developers, CNC programmers and specialists in Sharepoint and .Net. He also stated that companies now seem to be eager to put their technical projects into operation, after being put on the backburner for months during the recession. This is shown in the increased demand for permanent and temporary IT staff.
The REC also confirmed a growth in contracted IT positions rising to its highest level in sixteen months. However, in comparison to other sectors, the increase in IT demand was the least marked. Also, pay rates for IT contractors have continued to decrease although they are no longer decreasing at such a fast pace.